Loan guarantees

, what is a loan guarantee?

loan guarantees is the guarantee for the lender (financial institutions) and borrowers (mainly industrial and commercial enterprises and natural persons) provided by third-party guarantees. Security agencies to ensure borrowers do not conduct when the term of the contract for loan repayment, borrowers who is responsible for paying the outstanding and unpaid principal and interest. Loan guarantee contract in effect when the borrowers received the loan, the borrower or guarantor to repay principal and interest after failure.

loan guarantees is the major business credit guarantee institutions, the purpose of which is to relieve enterprises ' financing difficulties, dispersing possible risks of Bank lending, corporate finance, to ensure credit safety and promoting the role of business development.

second, the main forms of loan guarantees

1, working capital loan guarantees: working capital loans to address the production and operation of enterprises in the process of loan issued by a lack of liquidity. This loan is a loan of short duration (less than a year), turnover of strong, low financing costs, is the most frequently used the loans for their customers. Guarantees known as working capital loans for working capital loan guarantees.

5, personal business loan guarantee: it is individual or sole proprietorship for production and business need to bank loans for working capital to provide security.

c, type of loan guarantees

divided by way of security: guaranteed loans, mortgage loans and mortgage loans.

guarantee loan: is refers to by People's Republic of China guarantees method provides of guarantee way, to third people commitment in borrowing people cannot reimbursement loan Shi, by agreed bear joint responsibility and issued of loan;

mortgage loan: is refers to by People's Republic of China guarantees method provides of mortgage way, to borrowing people or third people of property as mortgage real issued of loan; (Chengdu loan guarantees network can for you provides this class loan guarantees service)

pledge loan: is refers to by People's Republic of China pledged under the guarantee law, the borrower or a third person movable property or rights as collateral on loans.